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Pros and Cons of US Bank Auto Loans
This is how US Bank car loans work
US Bank offers new and used car loans and will help you refinance your current car loan. US Bank does not offer an option to buy out your current lease. You can borrow anywhere from $5,000 to $100,000 regardless of the type of loan.
The APR for all US bank auto loans ranges from 2.59% to 5.49%.
The terms are between one and six years. Note that the longer your term, the more interest you pay. A long loan term could also cause you to turn your credit upside down, meaning you owe more money on your car than it’s worth.
The lender allows you to pre-approve your financing without having your car selected. Once you have decided on a car, you can set your loan terms. US Bank does not impose a minimum credit rating to get a loan or a time frame in which you will receive your money.
US Bank lists the following requirements to get the best interest rate on your car loan:
- A term of three years or less
- A loan amount of $30,000 or more
- A credit score of 800 or higher
- A vehicle that is less than a year old
- A financing amount of 80% or less of the vehicle value
You’ll also need to set up automatic payments from a US bank savings or checking account to get the lowest interest rate, but you don’t have to do this to get a loan. If you have a US bank relationship, you get a 0.5% discount on your interest rate.
However, if you close your account within a year, you will pay a prepayment penalty of 1% of the original loan amount, with a minimum of $50 and a maximum of $100. Depending on where you live, you may also pay a title registration fee.
Customer Service is available by phone Monday through Friday 7:00 am to 10:00 pm CT and Saturday 9:00 am to 5:00 pm CT.
Is the US bank trustworthy?
US Bank, a Better Business Bureau accredited entity, has an A+ rating of BBB. The BBB is a non-profit organization focused on consumer protection and trust. The BBB evaluates companies based on their response to customer complaints, honesty in advertising and openness to business practices.
However, the US Bank has been the focus of some recent scandals. In 2020, US Bank was one of three mortgage servicers to reach an agreement with the Department of Justice to pay a total of $74 million. The DOJ alleged that the service providers failed to follow certain regulations and made mistakes that affected borrowers’ bankruptcy filings.
That same year, the US Bank paid $200 million in a settlement with the government over allegations that the bank approved home insurance loans even though borrowers failed to meet standard underwriting requirements.
If you’re uncomfortable with the recent US Bank scandals, you might want to consider another lender for your auto loan needs.
US Bank Auto Loans Comparison
US Bank and PNC have the same range of loan amounts, while Bank of America has a higher minimum and maximum amount. If you are looking for a large loan amount, Bank of America may be your best bet.
All three lenders serve every US state and Washington, DC, although you may also pay a US Bank title registration fee depending on where you live.
US Bank has the highest starting rates for new cars, but lower starting rates for used cars and refinance than PNC or Bank of America. You likely need to have a solid credit history to qualify for loans from any of these three lenders, and the lower your credit history, the more likely you are to pay higher interest rates.
frequently asked Questions
Is US Bank a Good Bank for Auto Loans?
Yes, US Bank is one of many good auto loan options, although the best choice for you will depend on your individual needs and financial situation. US Bank offers competitive interest rates for borrowers with excellent credit ratings, although borrowers with poorer credit ratings may not be eligible at all.
How long does it take for the US bank to approve a car loan?
The bank says most applicants receive an approval decision within two hours during normal business hours.
What credit rating is required to get a car loan from US Bank?
US Bank does not list minimum credit requirements for their auto loans. However, you are more likely to qualify with a strong credit history.